A Langley developer says they have averted foreclosure on a highly-regarded Merritt golf course.
A foreclosure had been sought by creditors of the Sagebrush Golf Course, but Newmark’s chief financial officer J.P. Dhaliwal said both the creditors and Newmark have agreed to a refinancing.
The course is owned by Newmark Sagebrush Holdings, one of the firms under the Newmark banner controlled by Mark Chandler.
According to court documents, Pacific Oriental Financial loaned Newmark a first mortgage for $4.1 million and a second for $1.525 million, both issued in the fall of 2015.
The mortgages were extended in 2016.
“The first and second mortgages have matured but in breach of their terms they have not been paid,” said a statement of claim by lawyers for Pacific Oriental.
Also seeking money from Newmark are a list of contractors, all of whom have registered liens against the Sagebrush Golf Course.
They include a paving contractor, an irrigation system installer, a metal fabricator, and a fire safety system company.
“We have had a long road to getting this done simply because golf courses are not easy to finance,” said Dhaliwal.
He said a new general manager has been hired for the closed course.
A lawyer for Pacific Oriental Financial declined to comment.
Despite not being open for two years, Golf Digest ranked Sagebrush, located near the shore of Nicola Lake, the 18th best course in Canada on its Top 30 rankings this year.
The course has been closed since 2014, when its previous owners shut it down and put it up for sale. Newmark bought the course in 2016.
Newmark is also facing a recent court judgement in a case involving CIBC.
The bank made a statement of claim on Sept. 14, alleging that they are owed $225,755.
According to the CIBC claim, Chandler signed up for a CIBC Unlimited Business Operating Account in January, 2015.
Newmark Construction issued “multiple cheques” and requested CIBC pay the amounts until Chandler could make deposits.
“No further depsoits were ever made to Account 1,” said the statement of claim.
CIBC took the matter to court in September.
A default judgment on the matter was issued on Oct. 19, indicating that Chandler and Newmark had failed to respond to the claim in any way.
They were ordered to pay back the money.
Newmark is best known in Langley for its long-delayed Murrayville House condo project. That project, almost finished, is now in the hands of a court-appointed receiver, which is sorting out a number of claims of owernship of units in the building. Creditors have sued Chandler for millions over that project.
Chandler is also facing an extradition hearing over allegations of fraud in the United States.
His next hearing is scheduled for Jan. 25, 2018 in a Vancouver courthouse.